montgomery county government: organizational and fiscal structure jennifer hughes, director office...
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Montgomery County Government: Organizational
and Fiscal Structure
Jennifer Hughes, DirectorOffice of Management and Budget
September 21, 2012www.montgomerycountymd.gov/omb
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Oversight and Accountability• Internal Audit (Executive Branch)• Annual Audit of financial statements by an independent
audit (Executive Branch)• CountyStat (Executive Branch)• Inspector General (Legislative Branch)• County Council & Committees• Office of Legislative Oversight (Legislative Branch)• P-Card Monitoring and Reviews (Exec. Branch - DOF)• Expenditures over $10,000 (Exec. Branch - DOF) Other
forms of Accountability: Supervisory; to County Executive and Chief Administrative Officer; and to County Council.
• Media• Elections, Charter questions, and Referenda
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Major Differences Between the CIP and the Operating Budget
CIP• 6 Year Budget (Capital
Budget is the first year)• Approved biennially.• Infrastructure (roads &
buildings)• Long-life• Often debt-financed• Majority of spending is for
sitework and construction
Operating Budget• 1 Fiscal year• Approved annually.• Programs and services• Expenses typically
continue every year.• Typically funded with
current revenues• Majority of spending is for
staffing costs
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Budget Process Key Facts
• The County Executive develops and recommends budget proposals; the Council authorizes expenditures and sets tax rates.
• Annual six-year Public Services Plan, Operating Budget, and Capital Budget, and biennial six-year Capital Improvements Plan.
• Capital budget submitted to Council by January 15th; proposed Operating Budget by March 15th.
• Aggregate budget cannot grow more than CPI-U Washington-Baltimore without a minimum of six Council votes.
• Executive veto or reduction of items in Council approved budget.
• 1990 Charter amendment limit on property tax revenues. Charter Limit exceeded four times: FY03-05 and FY09. As of 2008 Charter amendment, to exceed the Charter Limit, requires 9 council votes.
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Summary: Operating Budget Process
• Sept-December: MCG Departments Prepare Submissions
• December/January: Agencies submit budgets to County Executive/Council
• December – March: OMB Reviews Submissions and Makes Recommendations to County Executive
• March 15: County Executive Transmits Budget to the County Council
• Early April: County Council Public Hearings• April – May: County Council/Committees
reviews budgets• By June 1: County Council Approves Budget
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FY13 ALL AGENCIES / ALL FUNDS
Net Transfers $7.50.2%
Prior Year Reserves $400.57.8%Fines &
Miscellaneous $245.6 4.8%
Intergovernmental $926.4 18.1%
Charges for Services $344.66.8%
Other Taxes $305.4 6.0%
Transfer & Recordation Tax
$141.0 2.8%
Income Tax $1,263.6 24.7%
Property Tax $1,471.6 28.8%
WHERE THE MONEY COMES FROMTOTAL APPROVED RESOURCES - $5,106.2 (million)
Non-Agency Uses $7.9 0.2%
County Government
$2,003.4 39.2%
M-NCPPC $124.5 2.4%
Reserves $381.5 7.5%Montgomery
College $290.5 5.7%
Montgomery County Public Schools
$2,298.4 45.0%
WHERE THE MONEY GOES *TOTAL APPROVED USES OF FUNDS - $5,106.2 (million)
*This total covers the full Operating Budget, and funds to the CIP, Debt Service, and Reserves. Of this amount $4,612,253,211 is approved in the Operating Budget.
FY13 EXPENDITURES BY FUNCTION
TAX SUPPORTED EXPENDITURES - $4,020.5 (million)
Non-Departmental $239.05.9% Montgomery College
$218.8 5.4%
Montgomery County Public Schools
$2,028.9 50.5%
Public Safety $568.0 14.1%
Health & Human Services $181.7 4.5%
Environment $1.5 0.1%
Libraries, Culture, &Recreation
$57.3 1.4%
General Government $164.5 4.1%
Debt Service $298.8 7.4%
Transportation $155.0 3.9%
M-NCPPC * $107.0 2.7%
TOTAL EXPENDITURES - $4,612.3 (million)
*Total M-NCPPC includes $4.8 million debt service.
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FY13 TAX SUPPORTED AGENCIES AND FUNDS
Net Transfers $38.70.9%
Prior Year Reserves $339.17.7%
Fines & Miscellaneous
$117.7 2.6%
Intergovernmental $693.7 15.7%
Charges for Services $72.4 1.6%
Other Taxes $304.1 6.9% Transfer &
Recordation Tax $136.6 3.1%
Income Tax $1,263.6 28.5%
Property Tax $1,462.2 33.0%
WHERE THE MONEY COMES FROMTOTAL APPROVED RESOURCES - $4,428.1 (million)
Non-Agency Uses $7.9 0.2%
County Government
$1,576.2 35.6%
M-NCPPC $107.4 2.4%
Reserves $327.9 7.4%
Montgomery College $241.4 5.5%
Montgomery County Public Schools
$2,167.3 48.9%
WHERE THE MONEY GOES *TOTAL APPROVED USES OF FUNDS - $4,428.1 (million)
*This total covers the full Operating Budget, and funds to the CIP, Debt Service, and Reserves. Of this amount $4,020,477,004 is approved in the Operating Budget.
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FY13 Tax SupportedExpenditures by Function
Tax Supported Expenditures Only Appropriation% of Total Cum % Workyears
1. MCPS 2,028,871,395$ 50.5% 50.5% 19,750.7 2. Public Safety 544,918,326$ 13.6% 64.0% 3,701.8 3. Debt Service 298,792,040$ 7.4% 71.4% - 4. College 218,786,599$ 5.4% 76.9% 1,711.1 5. Health and Human Services 181,733,135$ 4.5% 81.4% 1,117.1 7. Transportation 154,983,035$ 3.9% 85.3% 1,023.0 8. General Government & Other Functions 281,962,379$ 7.0% 92.3% 965.7 9. M-NCPPC (Park and Planning) 107,043,155$ 2.7% 94.9% 799.0 10. Retiree Health Insurance 134,482,024$ 3.3% 98.3% - 11. Libraries, Culture, & Recreation 57,342,437$ 1.4% 99.7% 686.7 12. Community Dev. and Housing 10,051,497$ 0.3% 100.0% 66.9 13. Environment 1,510,982$ 0.0% 100.0% 11.5
4,020,477,004$ 29,835.1
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Revenue Volatility: Income Taxes
8.2%11.0%
21.1%
2.1%0.0%
-19.3%
-0.3%
18.1%
3.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Est. FY13 Est.
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Est. FY13 Est.
Income Tax 940.859 1044.562 1265.377 1291.34 $ 1,291.72 $ 1,042.10 $ 1,039.23 $ 1,227.07 $ 1,263.96
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Revenue Volatility: Transfer & Recordation Taxes
133.7145.5
106.9
80.464.8
77.1 71.8 74.2 80.787.696.2
72.7
54.742.4 42.8
57.745.3
55.9
221.3
241.7
179.6
135.1
107.2120.0
129.5119.5
136.6
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Est. FY13 Est.
Transfer Tax
Recordation Tax
Total
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Est. FY13
Est.
Transfer Tax $ 133.7 $ 145.5 $ 106.9 $ 80.4 $ 64.8 $ 77.1 $ 71.8 $ 74.2 $ 80.7
Recordation Tax $ 87.6 $ 96.2 $ 72.7 $ 54.7 $ 42.4 $ 42.8 $ 57.7 $ 45.3 $ 55.9
Total $ 221.3 $ 241.7 $ 179.6 $ 135.1 $ 107.2 $ 120.0 $ 129.5 $ 119.5 $ 136.6
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Montgomery County Budget Growth Rates
14FYs 05-07 = 36.5% FYs 08-13 = 15.9%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
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Montgomery County Govt - Tax Supported
Total Tax Supported
Total Budget
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Montgomery County Govt - Tax Supported 11.0% 11.4% 14.1% 6.7% 1.5% -2.2% -7.0% 5.1% 11.8%
Total Tax Supported 8.1% 8.3% 9.8% 7.4% 3.7% 1.6% -5.0% 3.5% 6.2%
Total Budget 7.4% 7.7% 9.0% 7.2% 4.3% 3.0% -4.5% 2.2% 5.6%
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Operating Budget Rate of Growth
FY13 FY08-13FY08 FY12 Approved FY12-13 Average
Tax Supported Budgets Approved* Approved* Budget* % Change % ChangeMontgomery County Government $1,248,525,220 $1,175,833,680 $1,264,964,241 7.6% 0.3%Montgomery County Public Schools $1,836,100,947 $1,950,909,291 $2,028,871,395 4.0% 2.0%Montgomery College $196,811,472 $218,004,776 $218,786,599 0.4% 2.1%Md National Park & Planning Commission $101,892,900 $99,017,030 $103,678,655 4.7% 0.3%
Subtotal Tax Supported Agency Expenditures $3,383,330,539 $3,443,764,777 $3,616,300,890 5.0% 1.3%
Debt Service $239,480,290 $291,574,070 $298,792,040 2.5% 4.5%
Total Tax Supported Expenditures $3,622,810,829 $3,735,338,847 $3,915,092,930 4.8% 1.6%
FY08 to FY13 Operating Budget Agency Rate of Growth*
* Excluding funds for pre-funding retiree health insurance. The FY13 County Government tax supported appropriation includes a total contribution of $102.0 million, including contributions of $58.9 million on behalf of Montgomery County Public Schools and $1.8 million on behalf of Montgomery College. The Park & Planning Commission tax supported appropriation includes a contribution of $3,364,500.